Thu, 2 Jul 2026 · LIVE
Updated Jul 2, 2026 · 13:05
Business India News Updated Jul 2, 2026

Tata Steel Targets 40 MTPA Capacity, Eyes New Locations for Expansion

Tata Steel is on track to achieve its long-term target of 40 million tonnes per annum capacity, Chairman N. Chandrasekaran announced. The commissioning of Kalinganagar Phase II has raised total capacity to 26.1 MTPA, with new locations being evaluated for further growth. The company has deployed over 860 AI models to improve productivity, while digital platforms Aashiyana and DigECA saw GMV surge 161% to Rs 9,360 crore. Chandrasekaran also addressed challenges in European operations, particularly in the Netherlands, and ongoing engagement with the Dutch government.

Tata Steel on track for 40 MTPA target, plans further expansion: N. Chandrasekaran

New Delhi, July 2

Tata Steel has begun planning the next phase of its expansion as it progresses towards its long-term target of achieving 40 million tonnes per annum of steelmaking capacity, Chairman N. Chandrasekaran said on Thursday.

Addressing shareholders at the company's 119th Annual General Meeting (AGM), Chandrasekaran said the commissioning of Phase II of the Kalinganagar plant has increased Tata Steel's total capacity to 26.1 MTPA.

He described the expansion as 'a decisive step towards our long-term vision of achieving 40 MTPA capacity', adding that the company has also started evaluating new locations and land acquisitions for growth beyond that milestone.

Meanwhile, on its European operations, the Chairman said restructuring efforts were delivering results.

However, he cautioned that the operating environment in the Netherlands had become more challenging, with environmental regulations now exceeding European Union standards.

"We are actively engaging with the Dutch government and relevant stakeholders to develop a forward pathway that is environmentally compliant, financially affordable and viable over the long term," Chandrasekaran said.

Highlighting Tata Steel's digital transformation, he said the company has deployed more than 860 artificial intelligence (AI) models across its operations to improve productivity and efficiency.

Its digital platforms -- Aashiyana and DigECA -- recorded a combined gross merchandise value (GMV) of Rs 9,360 crore in FY26, marking a 161 per cent year-on-year increase.

Looking ahead, Chandrasekaran said Tata Steel remains focused on becoming "a larger, greener, smarter and resilient company" through sustained investments in technology, operational excellence and capacity expansion.

Shares of Tata Steel were trading higher at around Rs 186 on the BSE at 12:20 pm on Thursday. The stock has touched a 52-week low of Rs 152.55 and a 52-week high of Rs 224.40 on the exchange.

— IANS

Reader Comments

Rajesh Q

40 MTPA target is impressive but I'm more interested in how this translates to better steel prices for Indian consumers and more jobs for our youth. AI models sound fancy but ground-level impact matters more. Let's see if the shares recover from that 52-week low.

Michael C

Interesting approach from Tata Steel - balancing Indian expansion with European challenges. The 860 AI models is a huge number! But I wonder how many traditional jobs that replaces. Hope the restructuring in Netherlands doesn't hit workers too hard. Still, Tata has a good track record.

Priya S

The Aashiyana and DigECA platforms showing 161% growth is really promising for small businesses and builders. Digital transformation in steel is much needed - we need more efficiency to compete with China. Also glad to hear about environmental compliance efforts in Europe.

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